AuSable Capital Partners, LLC v. Sati Exports India Private Limited
8:21-cv-00129
D. Neb.Jul 24, 2023Background
- AuSable Capital Partners sued multiple defendants on March 25, 2021; service issues with overseas defendant Sati delayed proceedings.
- The court entered and amended a final progression order; deadline to seek leave to amend pleadings was May 31, 2023.
- Samsara Surfaces timely moved for leave to file an amended answer and attached the proposed pleading.
- Plaintiff did not oppose most changes but objected to: (1) revision of the original answer to Complaint ¶65 (argued to be a judicial admission), and (2) addition of an affirmative defense invoking the economic loss doctrine (¶145).
- Court analyzed Rule 15(a) factors (timeliness, prejudice, futility) and Rule 8(c) for affirmative defenses, and concluded amendments were not frivolous and would not prejudice the parties.
- Court granted Samsara leave to file the amended answer (ordered filed by July 28, 2023), allowing the revised ¶65 and inclusion of the economic-loss affirmative defense.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Withdrawal/revision of Answer ¶65 (alleged judicial admission) | ¶65 response was a judicial admission and cannot be "walked back." | Amendment timely under progression order; superseded pleadings lose binding effect and prior admissions may become evidentiary only. | Allowed. No significant prejudice; superseded admissions generally lose conclusive effect. |
| Addition of economic-loss affirmative defense (¶145) | Amendment is futile; defense should not be permitted now. | Failure to plead an affirmative defense can be cured; defense is not frivolous and is related to the case. | Allowed. Not clearly frivolous; permissibly pled though court noted the doctrine might be raised later even if omitted. |
Key Cases Cited
- Amrine v. Brooks, 522 F.3d 823 (8th Cir. 2008) (standards for denying leave to amend: undue delay, bad faith, futility, prejudice)
- Becker v. Univ. of Neb. at Omaha, 191 F.3d 904 (8th Cir. 1999) (district court discretion in granting leave to amend)
- White v. ARCO/Polymers, Inc., 720 F.2d 1391 (5th Cir. 1983) (treatment of admissions in pleadings and effect of superseded pleadings)
- In re C.F. Foods, L.P., 265 B.R. 71 (Bankr. E.D. Pa. 2001) (judicial admissions are generally binding absent supersession)
- Zotos v. Lindbergh Sch. Dist., 121 F.3d 356 (8th Cir. 1997) (courts may allow amendment to include omitted Rule 8(c) defenses)
- Geier v. Missouri Ethics Com'n, 715 F.3d 674 (8th Cir. 2013) (futility basis for denying amendment when amendment cannot survive dismissal)
- Hintz v. JPMorgan Chase Bank, N.A., 686 F.3d 505 (8th Cir. 2012) (denial for futility means the amendment would fail a Rule 12(b)(6) challenge)
- Sokolski v. Trans Union Corp., 178 F.R.D. 393 (E.D.N.Y. 1998) (burden on opposing party to show amendment would be futile)
